http://www.nytimes.com/2009/12/20/realestate/20deal1.html Here's the summary of the story. Some small-time Ponzi-schemer (OK, maybe $30-55M isn't small-time, but Bernie really changed the standards) buys an apt for $1.6M in new development shortly before getting caught. They put the condo up for sale at $1.6M which is later cut to $1.5M, and after 2.5 months of marketing a buyer offers $1.3M,... [more]
http://www.nytimes.com/2009/12/20/realestate/20deal1.html
Here's the summary of the story.
Some small-time Ponzi-schemer (OK, maybe $30-55M isn't small-time, but Bernie really changed the standards) buys an apt for $1.6M in new development shortly before getting caught. They put the condo up for sale at $1.6M which is later cut to $1.5M, and after 2.5 months of marketing a buyer offers $1.3M, which is accepted. Building board, however, does pretty-much-never-seen move of exercising right-of-first refusal and buys condo instead so as to "protect the investments of other people who bought in the building".
Turns out the board president is the president of the building's development company and has 5 other units in the building. Better yet, board allows right-of-first refusal purchase at $1.3M to be given to said president rather than the condo. Better still, the original buyers at $1.3M had also been in discusssions with said president on one of the 5 other units said president owns. Best of all, the $1.3M condo is now on the market at $2.45M (albeit now fully-furnished).
Talk about Ponzi schemes.
OK, discuss amongst yourselves & enjoy.
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